Tech stock rally faces 'trouble' as tightening by central banks overshadows AI, says BofA

Investors expecting technology stocks to continue a strong 2023 surge on enthusiasm over artificial intelligence are headed for “trouble” as central banks continue to tighten monetary policy, warned strategists at Bank of America on Friday.

They said that the “best correlation” found in markets over the past 15 years was between central bank liquidity, with an “insane surge” from $5 trillion to $25 trillion, and tech stocks, with the Nasdaq rallying from 2,000 to 16,000. The analyst, in a chart , said “Nouveau bulls” should also beware of a potential “double top” in the weighting for the so-called “magnificent seven” megacap tech stocks — Nvidia Corp. NVDA, -1.94%, Apple Inc. AAPL, +1.32%, Amazon.com Inc. AMZN, +1.14%, Microsoft Corp. MSFT, +1.08%, Alphabet Inc. GOOG, +0.20%, Tesla Inc. TSLA, +3.53% and Meta Platforms Inc. META, -0.25% — in the S&P 500.

Technology Technology Latest News, Technology Technology Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock Market News: Nvidia, Dollar Tree, Boeing stock movers, Subway chain soldNvidia, Wall Street’s AI darling, did not disappoint pushing shares near record, Dollar Tree latest retailer to warn on crime, Boeing reveals 737 Max supplier defect, Subway sandwich chain sold and investors weigh in on Fox GOP debate highlights. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Source: FoxBusiness - 🏆 458. / 53 Read more »

Asian Stock Market: Trades in positive territory, led by tech stocksAsian stock markets trade in positive territory on Thursday, led by technology stocks after major chipmaker Nvidia Corp reported stronger-than-expecte
Source: FXStreetNews - 🏆 14. / 72 Read more »